How to lay the foundation for corporate philanthropy in the workplace

Are you ready to crank up your company’s philanthropic efforts? There are a few signs that it might be the right time: you have the cash, you’ve identified a need, and it fits your company’s mission. The perks? Beyond the feel-good vibes, there are many other positive and significant benefits to engaging in corporate philanthropy.

FIND YOUR WHY

Before you launch your foundation, identify your “why”—your reason behind taking specific philanthropic action. It will serve as your North Star to keep you focused and minimize distractions for your giving throughout the years. There are many valid motivators behind forming a corporate foundation:

• You want to make an impact. When you’re passionate about making a difference, it’s a natural step to support industry nonprofits and want to share the wealth. Whether you want to fiscally support your industry or local grassroots organizations, your company’s generosity can strengthen your connection to the industry you are serving. It helps demonstrate that you are invested in more than making a profit.

• Employees want it. Increasingly, employees want to work somewhere that makes a difference in the world. They want to feel a sense of belonging and part of something bigger than themselves. In fact, according to a Fidelity Investments survey of 1,200 U.S. workers, “66 percent of respondents said they feel it’s important for companies to be philanthropic and to support different causes. Among millennials, it was 75 percent.”

• It’s important to your customers. Customers want to see companies that stand for something and support important causes. They are placing increased importance on corporate responsibility—and a foundation is a great way to demonstrate what issues matter most to your company and industry.

• It benefits your bottom line. Companies can benefit tax-wise from directing money to philanthropic pursuits. Plus, a corporate foundation keeps a clear delineation between foundation-related expenses and donations separate from the company’s finances. With a formal structure in place, funding decisions can thus be justified to stakeholders and corporate charitable activities become more predictable and strategic.

BUILD YOUR FOUNDATION

When first shaping your giving mission, consider exactly what you want to accomplish with your resources. Decide if you want the foundation to focus on local causes in your city or state or if you want to make an impact on a national or global level. A clear foundation mission aligned with your company mission can help define your giving goals.

Next, complete a cohesive strategic plan, then define and share your goals. When discussing your foundation, highlight the social impact you’re making with your donations. Better yet, use those highlights to draw attention back to your mission.

Bolster your foundation’s impact by creating buy-in from employees and other business stakeholders who want to give back. A great way to align with your vendor partners is to collaborate in meaningful ways that benefit your shared industry. After all, a well-chosen mission will not only naturally align with your employees’ interests and passions, but also with those in the industry who share your conscious capitalistic values. Donations given by employees, or creating competitions for matching donations among vendors, have been successful strategies to amplify giving.

Tax and legal professionals will be required for setting up the nitty-gritty details of the foundation and require a commitment to remaining transparent about your goals, funding, and actions. Working with community foundations is a great way to not only get the help you may need to start a foundation, but also to support local businesses.

CONSIDER ALTERNATIVES TO PRIVATE FOUNDATIONS

Foundations are a great way to support your company’s values through philanthropic giving—but they’re not the only way to give. If you’re looking for an alternative, consider a few of these other worthwhile options. A word of caution: Regardless of the philanthropic structure you choose to implement, dedicate time to becoming familiar with any and all relevant laws and regulations.

1. Donor-advised funds: Donating through donor-advised funds comes with fewer regulations, no board requirements, and fewer compliance and disbursement rules. Third-party entities, such as local community foundations or large financial institutions, can help you operate as a donor-advised fund rather than a private foundation. A downside, however, is that you’ll be somewhat limited in who you can donate to and how you can do so.

2. Supporting organizations: According to the IRS, “a supporting organization is a charity that carries out its exempt purposes by supporting other exempt organizations” (e.g., other public charities). “A supporting organization generally warrants public charity status because it has a relationship with its supported organization sufficient to ensure that the supported organization is effectively supervising or paying particular attention to the operations of the supporting organization.”

3. Lobbying: Another way to make a meaningful impact in your community is through lobbying. Many organizations have turned to creating their own political action committees to specifically advocate on issues affecting their business or industry. By becoming an advocate for your industry, you can make a difference to impact many stakeholders, including your customers. Strategic planning should be utilized to make this path impactful and it does not always provide short-term gains. However, you can create constructive change by speaking out and amplifying the voices of those who don’t have a similar platform.

SHARE YOUR SOCIAL IMPACT FROM THE ROOFTOPS

Finally, it’s critical to nail down your foundation’s elevator pitch. You can already explain what your company does and the value it brings others in one neatly packaged explanation. Now you’ll need to do that for your philanthropic efforts, too. When discussing your foundation, clearly highlight the social impact you can make and are making. Better yet, use this conversation to bring attention back to your company’s mission.

My final advice is this: Build something you believe in. Focus your efforts on making a difference in that area. You can’t be everything to everybody. Take everything you learn as a leader and use it to elevate others through charitable giving. Profit can be used as a power for good. Empower your company to take its mission to the next level with a strategic charitable giving plan.

Dr. Heidi Jannenga, PT, DPT, ATC, is the co-founder and Chief Clinical Officer of WebPT, the leading software solution for rehab therapists.